“On measures to consistently continue the application of market mechanisms in the cultivation and sale of cotton raw materials” Presidential Decree (PD-7, January 17, 2025) was adopted. The Ministry of Justice reported this.
According to the Decree, from the 2025 cotton crop:
▪️The Republic of Uzbekistan commodity and raw materials exchange on November 1 of the calendar year (for the 2025 crop, on February 1) will determine the initial price (first grade, second class) of cotton raw materials for the next year's crop, based on the average quotations of the last 6 months of futures quotations on the New York exchange, and will announce it on the official website of the Exchange;
▪️regardless of the form of ownership, all cotton raw material producing farms and clusters, as well as textile enterprises with a chain of processing cotton raw materials and producing yarn and thread, shall enter into purchase and sale (futures, forward, and spot) contracts for the supply of cotton raw materials in the cotton raw materials section of the Exchange, where auctions are held separately for each region;
▪️contracts between farms and processors will be formalized through exchange trades based on the free choice of the parties, whereby farms specify delivery terms and independently choose one or several buyers;
▪️all contracts on the Exchange are made between farms and processors within a database integrated with the “Agroplatform” information system.
